On September 22, 2020, the U.S. Department of Labor (DOL) announced a proposed rule simplifying the test to determine whether a worker is considered an “employee” under the Fair Labor Standards Act (FLSA) or an “independent contractor”. In short, the proposed rule uses the “economic reality” test as the basis for whether a worker is
Fluctuating Workweek Method for Paying Overtime – DOL Opines It Need Not Fluctuate Below 40 Hours Per Week
On August 31, 2020, the U.S. Department of Labor (DOL) issued an opinion letter addressing whether employees’ hours must fluctuate above and below 40 hours per week to qualify for the fluctuating workweek method (FWM) of calculating overtime pay. Although this post is primarily for employers who have already instituted the FWM, if you’re curious
DOL Issues Opinions Relating to the Outside Sales Exemption
On June 25, 2020, the U.S. Department of Labor (DOL) issued two opinion letters concerning the exemption of outside salespeople. In FLSA2020-6, the DOL opined that an employee qualifies for the outside sales exemption when deployed to high-population areas and events to sell products via stylized trucks (which is not itself a “place of
DOL Issues Final Rule Allowing Employers to Pay Bonuses Under Fluctuating Workweek Method
On May 20, 2020, the U.S. Department of Labor (DOL) published its final rule allowing employers to pay bonuses and incentives to employees who are paid a salary plus overtime on the fluctuating workweek method (FWM) of computing overtime (employees who are paid a salary whether they work few hours or many, plus 1/2 overtime
Commercial Motor Vehicle Hours of Service Rule Amended
Just a quick update (as I recognize this likely doesn’t affect many reading this blog) – on May 14, 2020, the Federal Motor Carrier Safety Administration released a final rule that updates the hours of service rules. However, the amendment neither increases driving time, nor the requirement that a 30-minute break be taken within eight
DOL Issues Final Rule Providing Flexibility to Retail and Service Industry Employers
On Monday, May 18, 2020, the U.S. Department of Labor released a final rule, effective immediately, regarding retail and service industry exceptions from overtime for employees primarily paid on commissions. The new rule simply removes two (2) previous provisions which listed industries that the DOL then-viewed as having “no retail concept” or “may be
DOL Issues 3 New Opinion Letters Regarding Excludability of Payments from the Regular Rate
On March 26, 2020, the U.S. Department of Labor (DOL) issued three new Opinion Letters, FLSA2020-3, FLSA2020-4, and FLSA2020-5 which all address various payments that may be excluded from the regular rate. This is important because the compensation that is included into the regular rate will increase the overtime rate. In a very
Employer Obligations Under the Federal Emergency Family and Medical Leave Expansion Act
On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (Families First Act or FFCRA) into law which, among other things, amends the Family Medical Leave Act (FMLA) with the Emergency Family and Medical Leave Expansion Act (EFMLA). Here is what employers need to know about Public Health Emergency Leave (“PHEL”):
- Employees
Employer Obligations Under the Federal Emergency Paid Sick Leave Act
In addition to my blog about the Emergency Family and Medical Leave Expansion Act (EFMLA), the Families First Coronavirus Response Act (Families First Act or FFCRA) also contains the Emergency Paid Sick Leave Act (EPSLA). Emergency paid sick time (EPST) will go into effect 15 days after the Families Act is enacted – April 1,
How to Handle Wage and Time Off Issues with Coronavirus – COVID-19 and Other Infectious Diseases in Minnesota
I held off as long as possible, but it seems like we are getting inundated these past few days with wage and time off questions relating to Coronavirus – COVID-19 as it moves into Minnesota. So, below is my take on the situation, and an overview of considerations for employers. As always, be sure not